X Co. Ltd. purchased assets worth ₹28,80,000. It issued debentures of ₹100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendors is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 30,000
When debentures are issued to the vendor as purchase consideration, number of debentures = purchase consideration ÷ issue price. A discount lowers the issue price, so more debentures are needed.
Face value = Rs. 100; discount = 4% of Rs. 100 = Rs. 4
Issue price = Rs. 100 − Rs. 4 = Rs. 96
Number of debentures = Rs. 28,80,000 ÷ Rs. 96 = 30,000
Dividing by the face value of Rs. 100 gives 28,800, which ignores the discount.
NCERT (2026-27 edition):
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